Gold purchase rules: How much gold can you buy without PAN card and Aadhaar card, know the income tax rules..

Gold rules: Gold is one of the most expensive metals. There are many rules (gold purchasing rules) related to its purchase and sale. Most people reach jewelers to buy gold without an Aadhaar card or PAN card.

Let us tell you that according to the Income Tax Act, it is necessary to have a PAN card and an Aadhaar card to buy gold more than a limit. If there is even a slight violation of these rules (income tax gold rules), then you can get into big trouble. Therefore, be sure to know the rules related to the purchase of gold beforehand.

This rule was implemented in 2020-

In the year 2020, the central government further expanded the scope of the Prevention of Money Laundering Act 2002. The gems and jewelery sector was also included in it. Most of the gems and jewelery sector were designated as reporting entities. Legally, these reporting entities have to follow the KYC rules (KYC rules for gold purchasing). This report has to be sent to the government-

For making cash transactions above the prescribed limit, the buyer will have to submit a PAN or Aadhaar. These reporting institutions have to send reports of cash transactions of Rs 10 lakh or more to the government under any circumstances. Rule 114B of the Income Tax Act 1962 states that it is necessary to show a PAN card and Aadhaar card for making transactions of Rs 2 lakh or more in cash and for purchasing gold of more than this amount.

Limit of cash transactions -

Section 269ST of the Income Tax Act provides that a person cannot transact a total amount of Rs 2 lakh or more in cash (cash transaction rules) one or more times in a day. Less amount than this can be taken or given in cash. The same rule applies to the purchase of gold of Rs 2 lakh or more.

This much fine will be imposed for breaking the rules-

Section 271D of the Income Tax Act states that if a transaction of 2 lakhs or more is done in a day in cash (cash transaction limit per day), then the recipient will be fined the same amount as the amount taken in cash. That is, this fine (fine on cash transactions) will be 100 percent and the entire amount will go into the penalty.

In this situation, PAN and Aadhar cards will have to be given-

According to the Income Tax rules (IT rules for cash transactions), if a person buys jewelry worth 2 lakhs or more in a single day, then he will have to give PAN or Aadhar card. In the case of electronic payment also, both these documents (documents for gold purchase) are required to be submitted.

The reason for this is that a cash transaction of more than Rs 2 lakh cannot be done by a person. If gold worth less than Rs 2 lakh is being bought in cash (gold buying rules in cash), then KYC is not required.

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